View more on these topics

FCA warns on boiler room graphene investments

The FCA has issued a warning to retail investors after uncovering evidence of a boiler room scheme selling investments in graphene, a new form of carbon which is currently being developed.

The regulator says it uncovered evidence of a ‘graphene investment firm’ on the computer systems of a suspected boiler room scam.

In September, the regulator issued a similar warning about the risks of investing in carbon credits. It said investors were being sold carbon credit certificates without there being a viable secondary market into which the investment could then be sold for profit.

In March, the FCA raised concerns about overseas land and crops and took court action in July after it found firms operating unregulated collective investment schemes investing in overseas crops and carbon credits. 

It says that it fears some of the firms offering those investments may have also been tempting consumers to invest in graphene.

In a note issued today, the regulator says: “We are yet to see any convincing evidence that there is a viable market for retail investors to make money from investments in rare earth metals.

“Manufacturing companies that use the metals almost always buy them in very large quantities, making it highly unlikely they will deal with small independent retail consumers.

“It has been reported to us that callers promoting investments in graphene are using dubious, high-pressure sales tactics and targeting vulnerable consumers.

“There is a strong possibility of fraud with graphene because it is unregulated and it is difficult to confirm that you have bought the genuine product.”

It adds that companies offering graphene investment are not regulated by the FCA and that any investors suffering loss will not be entitled to compensations under the FSCS. 


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm